Investing.com -- Nike Inc. (NYSE: NKE) shares rose 2% Wednesday after Barclays upgraded the athletic apparel company to Overweight from Equalweight and raised its price target to $73 from $64.

Barclays analyst Adrienne Yih cited recent operational progress, financial inflections, and management’s disciplined actions as reasons for the upgrade. "While acknowledging ongoing risks, we believe the risk/reward profile has shifted favorably, making NKE an attractive investment opportunity at this stage," Yih commented.

The analyst pointed to Nike’s recent progress in inventory management, operational resets, and strategic focus on brand health and margin stabilization. Yih noted that the upgrade is based on what Barclays views as peak skepticism by investors, despite evidence that the North America reset is progressing largely as planned.

Barclays highlighted tangible operational improvements already visible in North America, including a return to double-digit growth in running and sales growing faster than inventory. The firm said investor doubt on the turnaround fails to adequately reflect these improvements, while overemphasizing the known and ongoing reset risks in China and certain parts of Asia Pacific, Latin America.

The analyst also addressed what Barclays characterized as a false narrative of wholesale channel "stuffing," describing it instead as a normal restocking cycle.

Barclays acknowledged that risks remain, particularly from tariffs, geopolitical risk, and demand uncertainty. However, the firm said the company’s actions and early financial inflections suggest that the worst may be behind it.

For investors with a long-term horizon, Barclays said Nike offers an attractive risk/reward profile as it moves closer to a fundamental bottom and positions itself for renewed growth.